- The UK Competition and Markets Authority (CMA) is investigating PayPal’s acquisition of iZettle.
- When combined with other statements from the CMA, this may suggest more scrutiny for tech deals going forward.
- The CMA is investigating PayPal’s $2,2bn acquisition of Swedish firm iZettle in September.
- iZettle provides mobile credit card terminals to businesses.
- The CMA is concerned that the deal lessens competition in the UK – potentially resulting in higher prices and/or lower quality service.
- The CMA said that although iZettle is relatively new (founded in April 2010) it has established a leading position in mobile point of sale devices and was well placed to compete against PayPal in newly developing markets.
- The deadline for the final decision is 21 May 2019.
- In September, the CMA’s chief executive said that the decision to clear Facebook’s acquisition of Instagram in 2012 may have been “naïve”.
- Companies are able to pre-clear deals with the CMA.
- The CMA is able to block transactions – including completed transactions by requiring acquirors to divest parts or all of the acquired business.